What Caught Our Attention in the Investment World? – Week of February 10-14, 2020

By Kuldip K. Ambastha and Anil K. Ambastha

On Monday, February 10, 2020, Taubman Centers, Inc. (TCO) was a star performer for the day with its return of 53.2%. A combination of strong quarterly and annual results plus an acquisition offer from Simon Property Group, Inc. (SPG) led to this impressive return. 4Q2019 adjusted funds from operations per share (FFOPS) was reported as 97 cents, which beat consensus estimates and also exceeded 4Q2018’s 91 cents figure. The offer from Simon Property Group, Inc. is valued at $3.6 billion. Simon Property Group, Inc. is seeking an 80% ownership stake, while the Taubman family will sell one-third of its ownership interest and stay on as a 20% partner in a new entity called The Taubman Realty Group Limited Partnership (TRG). As part of the transaction, Simon Property Group, Inc. will acquire all common stock of Taubman Centers, Inc. at $52.50 per share in cash.

Keywords – The Taubman Realty Group Limited Partnership, Taubman Realty Group, Taubman Realty, TRGLP, TRG, Taubman Centers, Inc., Taubman Centers, Taubman, Taubman family, A. Alfred Taubman, Alfred Taubman, Robert S. Taubman, William S. Taubman, TCO, Simon Property Group, Inc., Simon Property Group, Simon Property, Simon, Simon family, Melvin Simon, Herbert Simon, real estate investment trust, REIT, real estate, RE, ownership, stake, interest, quarter, annual, common stocks, common shares, stocks, shares, equity, equities, adjusted funds from operations per share, FFOPS, consensus estimates, cash, transaction.

Disclosure – The principals and clients of Ambastha Financial LLC do not have any positions in TCO. The principals of Ambastha Financial LLC have short option positions in SPG, while the clients of Ambastha Financial LLC do not have any positions in SPG.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2020 – Ambastha Financial LLC.

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